The value of the world’s 300 largest pension funds reached US$24.4 trillion in 2024, growing by 7.8 per cent to reach a new record sum, according to a new report from WTW’s Thinking Ahead Institute.
It found Japan’s Government Pension Investment Fund replaced Norway’s Government Pension Fund as the leading investment organization by asset value with $1.77 trillion in total assets, 6.9 per cent larger than the former global frontrunner. The Canada Pension Plan Investment Board was the only Canadian plan sponsor to crack the top 20.
The top 20 pension funds were valued at $10.3 trillion, an 8.5 per cent increase from last year. According to the report, the asset accumulation of the top 20 funds outpaced the top 300 funds combined and now represent 42.4 per cent of the entire list’s value.
Read: Report finds global pension assets increase 4.9% in 2024
Defined benefit pension plans represented 71.2 per cent of the total assets. However, defined contribution pension plans grew at a faster pace in 2024 (14.3 per cent) and accounted for 27.7 per cent of the total assets.
“Macroeconomic volatility, geopolitical shifts and concentrated market risks are reshaping return expectations,” said Jessica Gao, director at the Thinking Ahead Institute, in a press release. “The current backdrop has tested even well-diversified portfolios, highlighting the difficulty of today’s investment environment.”
Funds are also facing increased demand from stakeholders — regulators, sponsors and members — who are raising expectations on how pensions are managed, she said.
Read: Report finds world’s 300 largest pension funds’ AUM increased 10% in 2023